Question: Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to

Solve the following Make in-house or outsourceSolve the following Make in-house or outsource

Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand and unit variable cost are assumed to follow a normal distribution (demand mean = 1050, with standard deviation = 90; and unit variable cost mean = 130 with standard deviation of 18. Make 1000 trials to simulate demand to find out the approximate probability to meet the demand through in-house production. function Data Manufactured in-house Fixed cost Unit variable cost $50.000 Purchased from supplier Unit cost $190 Production volume Model Total manufacturing cost Total purchased cost Cost difference Decision (manufacture/ outsource) Cost difference Decision (manufacture/ outsource) approximately 70 to 80% approximately 55 to 70% Above 60% approximately 40 to 60% approximately 40 to 60%

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